Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The following table summarizes loans and leases by portfolio segment at June 30, 2023 December 31, 2022 2016 13, June 30, 2023 not June 30, 2023 December 31, 2022, June 30, December 31, (in thousands) 2023 2022 Residential real estate $ 247,240 $ 250,221 Commercial real estate 375,194 376,976 Construction, land acquisition and development 75,369 66,555 Commercial and industrial 341,260 272,024 Consumer 88,937 92,612 State and political subdivisions 72,595 64,955 Total loans and leases 1,200,595 1,123,343 Unearned income - (810 ) Net deferred origination fees - 1,784 Allowance for credit losses (12,873 ) (14,193 ) Net loans and leases $ 1,187,722 $ 1,110,124 FNCB's commercial credit product offerings include commercial equipment financing, operating under the brand 1st June 30, 2023, December 31, 2022, FNCB has granted loans, letters of credit and lines of credit to certain of its executive officers and directors as well as to certain of their related parties. For more information about related party transactions, refer to Note 9, FNCB originates 1 4 1 4 three six June 30, 2023, three six June 30, 2022, three six June 30, 2023 2022. no 1 4 June 30, 2023 June 30, 2022, 1 4 The unpaid principal balance of loans serviced for others, which includes residential mortgages sold on the secondary market and SBA-guaranteed loans, was $75.7 million at June 30, 2023 December 31, 2022 Credit Risk Profiles– Commercial Loans Management continuously monitors and evaluates the credit quality of FNCB’s commercial loans by regularly reviewing certain credit risk profiles. Management utilizes credit risk ratings as the key credit quality indicator for evaluating the credit quality of FNCB’s commercial loan receivables. FNCB’s loan rating system assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial and industrial loans include commercial indirect auto loans which are not not 1. Minimal Risk 2. Above Average Credit Quality 3. Average Risk 4. Acceptable Risk 5. Pass - Watch 6. Special Mention 7. Substandard - Accruing 8. Substandard - Non-Accrual 9. Doubtful 10. Loss This analysis is performed on a quarterly basis using the following definitions for risk ratings: Pass – Assets rated 1 5 Special Mention – Assets classified as special mention do not not Substandard – Assets classified as substandard have well defined weaknesses based on objective evidence and are characterized by the distinct possibility that FNCB will sustain some loss if the deficiencies are not Doubtful – Assets classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that such weaknesses make collection or liquidation in full highly questionable and improbable based on current circumstances. Loss – Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not Credit Risk Profiles – Other Loans Certain residential real estate loans, consumer loans, commercial and municipal indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are placed on non-accrual status unless collection of the loan is in process and reasonably assured. FNCB utilizes performing (accruing) versus non-performing (non-accrual) status as the credit quality indicator for these loan pools. Collateral Dependent Loans Loans that do not The following table presents the credit risk profile of loans and leases summarized by portfolio segment and year of origination at June 30, 2023 Credit Risk Profiles Term Loans By Origination Fiscal Year Total (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans June 30, 2023 Credit Risk Profiles - Commercial Loans and Leases Commercial real estate Risk rating Pass $ 13,742 $ 79,559 $ 74,161 $ 42,399 $ 67,742 $ 79,813 $ 7,392 $ 364,808 Special mention - - 2,289 - - 5,723 295 8,307 Substandard - - 172 - - 1,907 - 2,079 Doubtful - - - - - - - - Loss - - - - - - - - Total commercial real state 13,742 79,559 76,622 42,399 67,742 87,443 7,687 375,194 Construction, land acquisition and development Risk rating Pass 3,187 38,937 27,602 2,870 336 965 1,285 75,182 Special mention - - 187 - - - - 187 Substandard - - - - - - - - Doubtful - - - - - - - - Loss - - - - - - - - Total construction, land acquisition and development 3,187 38,937 27,789 2,870 336 965 1,285 75,369 Commercial and industrial Risk rating Pass 76,639 98,605 30,196 12,765 12,180 9,496 91,735 331,616 Special mention - 44 400 278 41 142 198 1,103 Substandard 45 2,995 - 1,209 - 625 3,667 8,541 Doubtful - - - - - - - - Loss - - - - - - - - Total commercial and industrial 76,684 101,644 30,596 14,252 12,221 10,263 95,600 341,260 State and political subdivisions Risk rating Pass 14,389 13,547 21,427 2,464 16,280 4,488 - 72,595 Special mention - - - - - - - - Substandard - - - - - - - - Doubtful - - - - - - - - Loss - - - - - - - - Total state and political subdivisions 14,389 13,547 21,427 2,464 16,280 4,488 - 72,595 Credit Risk Profiles - Other Loans Residential real estate Performing 6,173 42,311 80,834 39,049 12,610 46,800 17,951 245,728 Non-performing - - 523 - 243 746 - 1,512 Total residential real estate 6,173 42,311 81,357 39,049 12,853 47,546 17,951 247,240 Consumer Performing 12,727 38,120 23,324 4,047 2,632 7,672 37 88,559 Non-performing - 114 94 16 57 97 - 378 Total consumer 12,727 38,234 23,418 4,063 2,689 7,769 37 88,937 Total loans and leases $ 126,902 $ 314,232 $ 261,209 $ 105,097 $ 112,121 $ 158,474 $ 122,560 $ 1,200,595 Gross charge-offs $ - $ 731 $ 488 $ 3 $ 6 $ 44 $ 57 $ 1,329 The following table presents the recorded investment in loans and leases receivable by major category and credit quality indicators at December 31, 2022 2016 13: Credit Quality Indicators December 31, 2022 Commercial Loans and Leases Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 43,188 $ 434 $ 99 $ - $ - $ 43,721 $ 205,887 $ 613 $ 206,500 $ 250,221 Commercial real estate 367,866 7,082 2,028 - - 376,976 - - - 376,976 Construction, land acquisition and development 62,965 797 - - - 63,762 2,793 - 2,793 66,555 Commercial and industrial 260,358 829 8,875 - - 270,062 1,962 - 1,962 272,024 Consumer - - - - - - 92,251 361 92,612 92,612 State and political subdivisions 64,955 - - - - 64,955 - - - 64,955 Total $ 799,332 $ 9,142 $ 11,002 $ - $ - $ 819,476 $ 302,893 $ 974 $ 303,867 $ 1,123,343 The following table summarizes activity in the ACL by major category for the three six June 30, 2023 2022 Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total Three months ended June 30, 2023 Allowance for loan and lease losses: Beginning balance, April 1, 2023 $ 1,164 $ 2,509 $ 1,669 $ 4,928 $ 1,597 $ 412 $ - $ 12,279 Charge-offs (5 ) - - (39 ) (509 ) - - (553 ) Recoveries - 51 - 12 285 - - 348 Provisions (credits) (38 ) 50 176 348 269 (6 ) - 799 Ending balance, June 30, 2023 $ 1,121 $ 2,610 $ 1,845 $ 5,249 $ 1,642 $ 406 $ - $ 12,873 Three months ended June 30, 2022 Allowance for loan and lease losses: Beginning balance, April 1, 2022 $ 2,196 $ 4,424 $ 538 $ 3,092 $ 1,259 $ 491 $ 1,129 $ 13,129 Charge-offs - - - (13 ) (290 ) - - (303 ) Recoveries - 224 - 7 262 - - 493 Provisions (credits) 12 (566 ) 208 218 76 114 - 62 Ending balance, June 30, 2022 $ 2,208 $ 4,082 $ 746 $ 3,304 $ 1,307 $ 605 $ 1,129 $ 13,381 Six months ended June 30, 2023 Allowance for credit losses: Beginning balance, January 1, 2023 $ 2,215 $ 4,193 $ 747 $ 4,099 $ 1,307 $ 503 $ 1,129 $ 14,193 Impact of ASU-2016-13 (1,028 ) (1,614 ) 1,067 (212 ) 370 (90 ) (1,129 ) (2,636 ) Charge-offs (5 ) - - (92 ) (1,232 ) - - (1,329 ) Recoveries - 105 - 23 743 - - 871 (Credits) provisions (61 ) (74 ) 31 1,431 454 (7 ) - 1,774 Balance at end of period $ 1,121 $ 2,610 $ 1,845 $ 5,249 $ 1,642 $ 406 $ - $ 12,873 Six months ended June 30, 2022 Allowance for loan and lease losses: Beginning balance, January 1, 2022 $ 2,081 $ 4,530 $ 392 $ 2,670 $ 1,159 $ 455 $ 1,129 $ 12,416 Charge-offs (3 ) - - (32 ) (363 ) - - (398 ) Recoveries - 224 - 11 307 - - 542 Provisions (credits) 130 (672 ) 354 655 204 150 - 821 Balance at end of period $ 2,208 $ 4,082 $ 746 $ 3,304 $ 1,307 $ 605 $ 1,129 $ 13,381 The following table presents ending loan and lease balances and related ACL by portfolio segment and impairment methodology at June 30, 2023 Residential Commercial Construction, Land Acquisition and Commercial State and Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total June 30, 2023 Allowance for credit losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,121 2,610 1,845 5,249 1,642 406 - 12,873 Total $ 1,121 $ 2,610 $ 1,845 $ 5,249 $ 1,642 $ 406 $ - $ 12,873 Loans and leases receivable: Individually evaluated for impairment $ 1,287 $ 1,456 $ - $ 124 $ 540 $ - $ - $ 3,407 Collectively evaluated for impairment 245,953 373,738 75,369 341,136 88,397 72,595 - 1,197,188 Total $ 247,240 $ 375,194 $ 75,369 $ 341,260 $ 88,937 $ 72,595 $ - $ 1,200,595 The table presents ending loan balances and related ALLL by segment and impairment methodology at December 31, 2022 2016 13: Residential Commercial Construction, Land Acquisition and Commercial State and Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total December 31, 2022 Allowance for loan and lease losses: Individually evaluated for impairment $ 17 $ 15 $ - $ 2 $ - $ - $ - $ 34 Collectively evaluated for impairment 2,198 4,178 747 4,097 1,307 503 1,129 14,159 Total $ 2,215 $ 4,193 $ 747 $ 4,099 $ 1,307 $ 503 $ 1,129 $ 14,193 Loans and leases receivable: Individually evaluated for impairment $ 1,472 $ 5,766 $ - $ 362 $ - $ - $ - $ 7,600 Collectively evaluated for impairment 248,749 371,210 66,555 271,662 92,612 64,955 - 1,115,743 Total $ 250,221 $ 376,976 $ 66,555 $ 272,024 $ 92,612 $ 64,955 $ - $ 1,123,343 The following table presents the amortized cost of collateral-dependent loans and leases by portfolio segment and type of collateral as of June 30, 2023 June 30, 2023 Type of Collateral (in thousands) Residential Property Commercial Property Business Assets Total Loans and leases: Residential real estate $ 1,287 $ - $ - $ 1,287 Commercial real estate - 1,456 - 1,456 Construction, land acquisition and development - - - - Commercial and industrial - - - - Consumer - - - - State and political subdivisions - - - - Total collateral dependent loans and leases $ 1,287 $ 1,456 $ - $ 2,743 A reserve for unfunded commitments is recognized and included in other liabilities on the consolidated statements of financial condition, with adjustments to the reserve recognized in non-interest expense in the consolidated statements of income. The balance for unfunded commitments was $1.7 million at June 30, 2023 December 31, 2022. 2016 13 January 1, 2023, three six June 30, 2023, three six June 30, 2022, The following table presents the delinquency status of past due and non-accrual loans and leases at June 30, 2023 December 31, 2022 June 30, 2023 Delinquency Status 30-89 Days >/= 90 Days Nonaccrual Total (in thousands) Past Due Past Due Loans Past Due Current Total Loans and leases: Residential real estate $ 299 $ - $ 1,512 $ 1,811 $ 245,429 $ 247,240 Commercial real estate 219 - 1,652 1,871 373,323 375,194 Construction, land acquisition and development - - - - 75,369 75,369 Commercial and industrial 810 - 169 979 340,281 341,260 Consumer 1,302 49 378 1,729 87,208 88,937 State and political subdivisions - - - - 72,595 72,595 Total loans and leases $ 2,630 $ 49 $ 3,711 $ 6,390 $ 1,194,205 $ 1,200,595 December 31, 2022 Delinquency Status 30-89 Days >/= 90 Days Nonaccrual Total (in thousands) Past Due Past Due loans Past Due Current Total Loans and leases: Residential real estate $ 555 $ - $ 713 $ 1,268 $ 248,953 $ 250,221 Commercial real estate - - 1,545 1,545 375,431 376,976 Construction, land acquisition and development - - - - 66,555 66,555 Commercial and industrial 113 - 144 257 271,767 272,024 Consumer 1,378 79 361 1,818 90,794 92,612 State and political subdivisions - - - - 64,955 64,955 Total loans and leases $ 2,046 $ 79 $ 2,763 $ 4,888 $ 1,118,455 $ 1,123,343 Included in loans and leases receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment in these non-accrual loans was $3.7 million at June 30, 2023, December 31, 2022 six no may may 90 90 June 30, 2023 December 31, 2022 third The following tables present a distribution of the recorded investment and unpaid principal balance of impaired loans and the related allowance at December 31, 2022 2016 13. not not $100 December 31, 2022 December 31, 2022 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 431 $ 509 $ - Commercial real estate 1,071 1,339 - Construction, land acquisition and development - - - Commercial and industrial 218 218 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 1,720 2,066 - With a related allowance recorded: Residential real estate 1,041 1,041 17 Commercial real estate 4,695 4,695 15 Construction, land acquisition and development - - - Commercial and industrial 144 362 2 Consumer - - - State and political subdivisions - - - Total impaired loans with a related allowance recorded 5,880 6,098 34 Total impaired loans: Residential real estate 1,472 1,550 17 Commercial real estate 5,766 6,034 15 Construction, land acquisition and development - - - Commercial and industrial 362 580 2 Consumer - - - State and political subdivisions - - - Total impaired loans $ 7,600 $ 8,164 $ 34 The following table presents the average balance and interest income by loan segment recognized on impaired loans for the three six June 30, 2022: For the Three Months Ended For the Six Months Ended June 30, 2022 June 30, 2022 Average Interest Average Interest (in thousands) Balance Income (1) Balance Income (1) Residential real estate $ 1,757 $ 15 $ 1,740 $ 30 Commercial real estate 6,472 58 6,961 112 Construction, land acquisition and development - - - - Commercial and industrial 417 6 576 10 Consumer - - - - State and political subdivisions - - - - Total impaired loans $ 8,646 $ 79 $ 9,277 $ 152 The additional interest income that would have been earned on non-accrual and restructured loans had these loans performed in accordance with their original terms approximated $43 thousand and $86 thousand for the three six June 30,2022, Loan Modifications to Borrowers Experiencing Financial Difficulty ASU 2022 02 no There was one six June 30, 2023 12 three six June 30, 2022 Residential Real Estate Loan Foreclosures There were three June 30, 2023 June 30, 2022 June 30, 2023 2022 |